Market Notebook

PRICE ACTION:
Equity prices, as measured by ticker SPY, and bond prices, as measured by ticker BND, closed lower on the week.

TECHNICAL ANALYSIS:
From a technical standpoint, SPY prices could be considered in consolidation, while BND prices could be considered in a downward trend.

SENTIMENT:
Recently released inflation data suggests inflation remains a significant concern. Market participants appear concerned that the Federal Reserve may need to keep interest rates higher for longer and that corporations will have difficulty maintaining profitability.

ECONOMY AND FUNDAMENTALS:
Economic indicators within the Market Notebook remain mixed but are skewing towards recession. The key holdout is Jobless Claims. A recession becomes more likely if jobless claims increase. Thus far, claims are not signaling recession. Nonetheless, real economic activity will likely slow over the next few months as the Federal Reserve continues to act to contain inflationary pressures.

NEXT WEEK:
The likely picture for equities remains mixed but skewed towards increased volatility. 

Since bonds appear to be in a downward trend, it would seem prudent to avoid purchases unless necessary.

All the best during the week ahead!

Disclaimer: Nothing in this discussion should be considered investment advice. The content of this discussion is strictly my personal opinion and subject to change at a moment’s notice. Investment advice can only be provided to you by your investment professional and not by a general market discussion such as this one. If you wish to speak with an investment advisor, contact us. We can probably help.